Publications

Japanese automotive businesses´profit margins have generally improved, mainly due to higher sales in North America.

Payment behaviour in the US automotive sector has been rather good over the past two years.

Inflation is expected to remain high in 2015, at around 7%, while the current account deficit is expected to remain at the same level as in 2014 (5.7% of GDP).

The Polish economy is expected to benefit from low energy prices and the rebound in the Eurozone, with GDP expected to grow 3.5% in 2015, based on robust domestic demand and increasing exports.

Economic growth is expected to continue in 2015 and 2016, although at a slower pace: by 3.0% and 2.4% respectively.

Lower construction growth and overcapacity affect the sector, but the outlook for 2016 has improved.

The outlook for the industry remains subdued, with many Smaller steel mills struggling with poor operating margins.

Competition in the sector is high, and there are clear signs of price wars as the industry is struggling with overcapacity and weaker demand.

Structural overcapacity in the industry had a negative effect on businesses´ profit margins in 2014, and this negative trend is expected to continue in 2015.

In 2015, Australian business insolvencies are expected to increase slightly by 2% as economic growth slows down and the mining industry faces mounting troubles.

The outlook for the machinery industry is promising, as the Italian economy is expected to grow 0.6% in 2015 and 0.9% in 2016 after two years of contraction.

Despite the UAE’s overall diversification, the lower oil price is expected to take its toll on economic growth.

Tunisia’s economy is expected to grow moderately in 2015 and 2016, supported by increased demand from the eurozone.

Saudi Arabia’s GDP growth is expected to slow down to 3.0% in 2015 following a growth of 3.6% in 2014.

An expected rebound in agriculture will lead to higher GDP growth in 2015, forecast to increase 4.6%. Growth is also sustained by increasing exports, mainly to the eurozone.

In 2015, Kuwait's economic growth is expected to decrease to 1.7% due to the lower oil price and decreased oil production.

Despite its growing economy, Japan faces major demographic challenges. There is an urgent need to make the labour market more flexible to achieve a sustainable rebound and boost economic performance.

The UK economy expanded by 2.6% in 2014, the fastest pace of growth since 2007. While consumer spending was the main driver, real fixed investments also increased.

The rebound of the Dutch economy is expected to accelerate in 2015, with export growth accompanied by a recovery in private consumption, industrial production and investment.

In 2015, Ireland’s economy is forecast to grow by 3.6%, backed by exports to the US and UK where demand is picking up. Private consumption is expected to increase further.

In contrast to previous years when exports provided the main contribution to German economic growth, household consumption is expected to become the key driver in 2015.

In 2015 the French economy is expected to grow 1.1% as private consumption, manufacturing and exports improve. However, this projected growth rate remains below the forecast eurozone average of 1.4%.

After modest growth in 2013 (up 0.3%) and 2014 (up 0.4%) the Austrian economy is expected to see a modest 0.8% surge in 2015.

Chemicals/pharmaceuticals has been a well performing sector in Switzerland; demand and profit margins are expected to remain stable in 2015.

German chemicals/pharmaceuticals businesses have a strong market position, and many are highly specialised. The industry has a well-deserved reputation for innovation and a competitive edge.

The UAE’s ICT market is currently characterised by high competition, single-digit margins, low entry barriers and stagnating growth in sub-segments like PCs and desktops.

In 2015, the Dutch ICT sector is expected to grow 3 % in volume, on the back of the country’s economic rebound (GDP is forecast to grow 1.7 %).

The German ICT sector generally has good growth prospects, but low margins, sharp price erosion and steep competition lead to an on-going trend of consolidation.

Australia’s ICT sector continues to perform well while the IT market in particular is expected to have considerable medium-term growth potential.

In combination with a forecast rebound of the Italian economy (up 0.7 %), the ICT sector is expected to record a modest growth of 0.6% in 2015.

The main strengths of the Polish IT sector are the stable demand, a strong export performance and financial transparency, as the largest IT distributors are listed on the Warsaw Stock Exchange.

As in 2014, the 2015 outlook for the French ICT industry looks reasonably favourable with sales growth expected to increase by 2 %.

In the coming years, the growth of ICT in China is expected to outperform on a regional and global basis.

Despite the significant amount of time given B2B customers to pay their invoices, a sizeable proportion of the total value of domestic B2B receivables in Turkey (55.2%) was overdue.

An agreement curtailing Iran’s nuclear programme in exchange for the lifting of international sanctions could reopen the Iranian economy to Western exporters, creating opportunities but also risks.

33% of survey respondents in Sweden (compared to 20% in Western Europe) consider a fall in demand for their products and services as one of the greatest challenges to business profitability in 2015.

Respondents in Denmark are the most inclined to use trade credit of all the countries surveyed in Western Europe. 70.5% of the total value of their domestic B2B sales is transacted on credit terms.

31% of survey respondents in Switzerland, compared to 24% in Western Europe overall, consider cost containment to be one of the greatest challenges to business profitability in 2015.

The strong focus on protection of exports from the risk of payment default by customers comes as no surprise for the Netherlands, whose GDP growth is heavily dependent on international trade.

In 2015, Sweden expects a modest growth in the consumer durables retail segment.

The Chinese retail market remains highly fragmented due to the large population and differences in consumer behaviour and purchasing power across the country.

The forecast for Spain ́s economy seems to sustain further consumer durables sales in 2015. However, for some segments growth could be lower, given high purchase levels already seen in 2014.

In 2015, Colombia’s economic performance is expected to slow down somewhat (to 3.8%) due to lower commodity prices, while robust domestic demand should sustain growth.

In 2015, Chile is forecast to see a decrease in inflation and an increase in economic growth.

Argentina’s economy contracted 1.6% in 2014, and this negative trend is expected to continue in 2015, as exchange and price controls are forcing producers to scale back their activities.

Depreciation of the Euro against the British Pound has made UK products and services less attractive to eurozone buyers.

Italian GDP is expected to grow after three years of contraction. Domestic demand is forecast to stabilise as investments and household consumption are expected to accelerate.

Problems remain in the building sectors of most of the countries covered in this issue of the Market Monitor. Consequently, the outlook for the construction industry in 2015 remains muted.

Problems remain in the building sectors of most of the countries covered in this issue of the Market Monitor. Consequently, the outlook for the construction industry in 2015 remains muted.

Problems remain in the building sectors of most of the countries covered in this issue of the Market Monitor. Consequently, the outlook for the construction industry in 2015 remains muted.